Hanoi industrial production maintains growth momentum in Q1

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Ngoc Mai 10:37, 2022/04/06

The manufacturing and processing industry, accounting for 96.5% of total production value in the industry sector, expanded 5.3% in the first quarter.

Hanoi’s Index of Industrial Production (IIP) in March has surged by 15.1% month-on-month and 6.3% year-on-year, marking continued positive growth since early 2022, according to the Hanoi Statistics Office.

Steel production at Hoang Vu Company in Nam Tu Liem District, Hanoi. Photo: Chien Cong

Such growth has led to an expansion of 5.3% year-on-year of the IIP in the first quarter, said the municipal Statistics Office in its monthly report.

Upon breaking down, the mining industry’s output increased by 14.7% year-on-year between January and March. The manufacturing and processing industry, accounting for 96.5% of total production value in the industry sector, expanded 5.3%.

Production and distribution of electricity rose 3.9% year on year while water supply, sewage treatment, and water collection went up 6.8%.

Subsectors that increased sharply due to growing demand during the three months include paper production (up 33% year-on-year); furniture production (18.3%); garment (6.5%); electronics and computers (5.9%).

Meanwhile, major industrial subsectors that saw their output fall during the period were metal production (-7% year-on-year), vehicles (-5.2%), production of machinery and equipment (-3.8%), and chemical products (-1.3%).

According to the report, the employment rate at industrial companies in the first quarter rose by 1% year-on-year.

In terms of economic sectors, the employment rate in the manufacturing and processing sector went up by 0.1% year-on-year; together with electricity production and distribution (0.5%); water supply, sewage treatment, and water collection (20%); and mining (3.3%).

Trade and services sector recover

In the January – March period, Hanoi’s exports rose by 6.1% year-on-year to US$3.6 billion, and imports were $9.1 billion, up 18.5%, resulting in a trade deficit of US$5.5 billion.

Export items that recorded strong growth in the first three months were garments with $637 million, up 48.7% year-on-year; computers and electronics products with $560 million, up 10.6%; vehicles and parts with $384 million (21.9%); furniture products with $234 million (52.2%).

The city's state budget revenue rose by 15.6% year-on-year to VND99 trillion (US$4.33 billion), or 31.8% of the year’s estimate, of which domestic revenue made up a lion’s share of VND91.9 trillion ($4 billion), up 14.5%.

Meanwhile, Hanoi spent VND16.5 trillion (US$722.1 million) in the three months, or 15.5% of the estimate and up 31.6% year-on-year.

Foreign direct investment (FDI) commitments to Hanoi in the year to March 20 hit $513.1 million, including 62 fresh projects worth VND24.9 million, and an additional US$122.8 million pumped into 28 existing projects. They have also injected US$365.4 million to acquire stakes or contribute capital to local companies.

Meanwhile, nearly 6,000 enterprises were established during the three months with registered capital of VND63.5 trillion (US$2.77 billion), up 2% in the number of enterprises and 4% in capital year-on-year. The number of enterprises suspending operations during the period rose by 7% year-on-year to 5,174, while 3,939 resumed operations, up 2%.

The consumer price index (CPI), the main gauge of inflation, increased 0.91% month-on-month in March and 2.18% versus last December. This resulted in an average expansion of 2.66% year-on-year in the first three months of this year.

Total retail sales of consumer goods and services in Hanoi in the three months are estimated at VND161.5 trillion (US$7.06 billion), up 9.1% year-on-year, which reflected the recovery of the services and trade sectors thanks to economic reopening.

In March, the number of foreign tourists coming to Hanoi went up by 9.7% against the previous month to 16,000, but down 13.7% year-on-year.

Overall, the total number of foreign tourists to Hanoi in the three months was 45,000, falling 12% year-on-year, while the domestic arrivals reached 279,000, up 5.3%.